ACCA AA · Chapter 10 · Question 7 of 10
Which of the following is a key benefit of using data analytics in an audit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Entire populations can be analysed to identify unusual items rather than relying on a sample
Explanation
Data analytics tools allow the auditor to analyse whole populations, identify anomalies and focus work on higher-risk items. The auditor must still exercise judgement over results, needs to understand the IT environment to rely on the data, and cannot obtain absolute assurance.
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